Schumer celebrates success at student loan service center

PERRY – Sen. Charles E. Schumer, D-N.Y., visited a student loan service center here Monday to celebrate his successful effort to save 315 jobs at the facility and an additional 535 in Arcade and Horseheads.

Schumer blocked a measure in the student loan rate bill that would have eliminated the three Sallie Mae-owned Pioneer Credit Recovery operations. They were slated to be cut to offset the money that would have been lost if student loan rates did not double.

“This is cause for celebration,” Schumer said, “and I have been loud and clear with my Senate colleagues that I will oppose using this offset in any piece of future legislation.”

Schumer noted that the financial offsets also came up in the U.S. Education Department’s fiscal year 2013 and 2014 budget plans to cover cost increases in Pell grants and that they may be proposed again. During the debate on the bill, Schumer pointed out that the student loan recovery operations are paid only when they get borrowers to make their payments.